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TMI Blog2014 (1) TMI 123X X X X Extracts X X X X X X X X Extracts X X X X ..... ties, which could be invoked for loss caused or would be caused for violation of the terms of the bond. The letter invoking the guarantee states that terms of the bond have been violated. The petitioner has not filed the said bond on record. Guarantee is specific in terms and states that it can be invoked when there is a breach by the importer of any term and condition mentioned in the bond. There is no stipulation for show cause notice, reply and adjudication order. Terms of the bank guarantee do not stipulate that the same cannot be invoked till an adjudication order is passed. The petitioner was allowed to import capital goods on payment of 5% customs duty in view of the bond and the bank guarantee for the balance amount. The bank gua ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... dated 10.12.2013 has been enclosed. The letter specifically states that the petitioner has misused Export Promotion Capital Goods Scheme (EPCG Scheme) and during the course of investigation, it was noticed that the party, i.e. the petitioner, had not fulfilled conditions of Notification No.97 of 2004 and the bonds submitted in this regard. The notice also records that this was causing revenue loss to the Government. 3. Learned counsel for the petitioner has stated that imports were made under EPCG Scheme for construction of a hotel, which was subsequently transferred to Sanya Hospitality Pvt. Ltd. It is stated that the said Sanya Hospitality Pvt. Ltd. has fulfilled the said export obligation and our attention is drawn to letter dated 25.1 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on consequent to the sale of the entire hotel. However, in paragraph 3 of the said letter, the petitioner was required to approach the Regional Authority for necessary action. In letter Dated 11.04.2013, written by the Foreign Trade Development Officer, the petitioner was informed that their request for transfer of EPCG authorization without insisting on fresh bank guarantee and letter of authorization was considered by the EPCG Committee in their meeting held on 06.03.2013 and it was decided:- "The DOR has suggested not to deviate from the condition imposed vide EPCG Committee decision dated 17.11.2011 to furnish fresh BG by M/s. Sanya Hospitality Pvt. Ltd. The Committee however, observed that matter of accepting BG lies with Customs ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the said submission as we find that the guarantee is specific in terms and states that it can be invoked when there is a breach by the importer of any term and condition mentioned in the bond. There is no stipulation for show cause notice, reply and adjudication order. Terms of the bank guarantee do not stipulate that the same cannot be invoked till an adjudication order is passed. The petitioner was allowed to import capital goods on payment of 5% customs duty in view of the bond and the bank guarantee for the balance amount. The bank guarantee is for the unpaid customs duty and not in respect of penalty, interest etc. 7. However, we wish to clarify that the present order should not be construed as a final or conclusive determination by ..... X X X X Extracts X X X X X X X X Extracts X X X X
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